Tanzania’s CRDB Bank PLC ventures into Burundi; Targets War-torn DRC

Bujumbura Monday Dec 10, 2012 - Tanzania’s leading Commercial Bank - CRDB Bank PLC - has launched operations in Burundi with a $10 Million subsidiary adding impetus to the already growing interest in the East African city of Bujumbura. The subsidiary, which was a culmination of bilateral trade negotiations between Tanzania and Burundi initiated early 2011, is a full- fledged financial institution and is targeted at netting the un-banked population of Burundi and will redefine the banking landscape in the country that is still on a recovery path from a long spell of civil strife.

Burundian  President H.E. Pierre Nkrunziza cuts a ribbon alongside CRDB Bank PLC Managing Director Dr. Charles Kimei (Left) during the official opening of the bank's maiden subsidiary in Bujumbura Friday. The bank has spent $10M to launch operations in Burundi.

Speaking while launching the Inyenyeri Branch in Bujumbura Friday, CRDB Bank Managing Director Dr. Charles Kimei said the bank is exploring new markets and is keen to deliver services to “uncharted frontiers” so as to draw optimal benefits and grow its network.

“We know we are targeting high risk areas but it is strategic for us. It takes courage to reap any value in the industry anywhere in the world. Look at what happened to South Sudan; no one thought that it would be what it is today and everyone is now scrambling for a piece of the pie,” Dr. Kimei said.  

“We are looking at expanding into the Democratic Republic of Congo and bank the population there. Congo has a lot of wealth, considering the minerals present in the country and yet there’s no banking institution there,” he added.

Mr. Kimei noted that the bank’s decision to launch its regional expansion plans via Burundi was informed by the growing volumes of trade between Tanzania and Burundi indicating that most business people conducting trade in Tanzania have not had the convenience of enjoying banking services for a long time. “People have had to carry chunks of money across the border to trade,” he said.

Addressing guests at the launch Burundian President Pierre Nkurunzinza lauded the move saying Burundi is at a critical time towards economic self sufficiency and banking institutions have an important role to play in as far as this growth is concerned.

“We need banks that will go to the people and address their needs for us to achieve the economic self-sufficiency that we desire,” President Nkrunzinza said.

CRDB becomes the first Tanzanian bank to venture into the regional market that has been grossly dominated by Kenyan banks alongside other international banking institutions such as Barclays and Standard Chartered Bank. Kenya Commercial Bank opened its first subsidiary in Burundi in May this year joining other major players like Diamond Trust Bank (an affiliate of the Aga Khan Fund for Economic Development - AKFED) and Ecobank.

CRDB  Bank’ PLC is betting on bilateral; goodwill between Tanzania and Burundi and is keen on developing new and innovative products including mobile and Internet banking services.

“We have reached a time when money transfer services such as MPESA should be harnessed and a system created that tracks and monitors transaction to enable banks give more value to the masses,” he explained.

The bank is keen on leveraging technology in growing its market in the francophone country as it widens its asset base that is currently estimated to be over $2 billion.